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Isn’t it time you thought about investing in the largest economy in South America..?

• Thought the Brazilian economy was in the grip of 1,000% inflation?  Inflation is currently running at a modest 6%
• Thought Brazilian institutions were sinking under debt?  We paid off our loans to the IMF in December 2005
• Thought Brazilian industries were held to ransom by soaring oil prices?  We have more than halved our dependence on imported oil in recent years

Here are just three reasons why we think your investment will have a solid foundation:

Resources

Brazil is a country of vast natural resources – the agricultural sector employs a quarter of the labour force and the country’s diversity of crops makes us largely self-sufficient in food- which means we have more than enough to spare. We are the world’s largest producer of sugar cane and coffee, and our other exports include cocoa, orange juice, and soya beans. In addition, the poultry, pork and milk industries have undergone rapid growth in the last decade.

We are one of the world’s leading producers of hydroelectric power, which accounts for 90% of country’s own electricity. And we exported 6 million kWh in 2004.

Our extensive mineral resources such as iron and manganese, are fuelling runaway industrial growth elsewhere in the world, for example in China. We also have nickel, tin, bauxite, and copper…the list continues. We have proven oil reserves of 15 billion barrels and expertise in deep-water prospecting.

These resources are no longer exploited at the cost of the environment. The government is getting serious about sustainability. We recently adopted an Environmental Crimes Law to combat deforestation in the Amazon.

Stability

Since 1994, the Real Plan has brought rampant inflation under control. And the introduction of a policy of fiscal prudence continues to this day under President Lula da Silva. The economy showed steady GDP growth of 2.2% in the period 2001-05. Unemployment is under 10%. Trade has doubled since 1990, as has US direct investment following a sharp reduction in import tariffs. Exports in 2005 were the best ever in the country’s history.  Brazil is now the 11th largest economy in the world.

Services

We have a diverse and sophisticated services sector. Take Financial Services, for example, which has recently seen far-reaching structural reform to attract foreign capital. The result has been a huge increase in investment from the USA alone. Now it’s the turn of the São Paolo and Rio de Janeiro stock exchanges to be consolidated. Brazilians are as technology-hungry as anywhere in the world. You used to wait years to have a telephone installed. Today there are 70 million mobile phones and over 25 million internet users.

• So you thought Brazil was a modernising country ripe for investment?

You’re not wrong.

Think of the future. Think Brazil…